$34$ E$14-12($Entry for Redemption of Bond; Bond Issue Costs$)$ On January $2,2009,$ Banno Corporation issued

$$1,500,000$ of $10\%$ bonds at $97$ due December $31,2018.$ Legal and other costs of $$24,000$ were incurred in

connection with the issue. Interest on the bonds is payable annually each December $31.$ The $$24,000$ issue

costs are being deferred and amortized on a straight$-$line basis over the $10-$year term of the bonds. The

discount on the bonds is also being amortized on a straight$-$line basis over the $10$ years. $($Straight$-$line is not

materially different in effect from the preferable "interest method."$)$

The bonds are callable at $101($i$.$e$.,$ at $101\%$ of face amount$),$ and on January $2,2014,$ Banno called

$$900,000$ face amount of the bonds and redeemed them.

Instructions

Ignoring income taxes, compute the amount of loss, if any, to be recognized by Banno as a result of retiring

the $$900,000$ of bonds in $2014$ and prepare the journal entry to record the redemption.